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Hanzo_Wave_Price %
Hanzo_Wave_Price % is a custom indicator for the TradingView platform that combines RSI (Relative Strength Index) and Stochastic RSI while also displaying the percentage price change over a specified period. This indicator helps traders identify overbought and oversold conditions, analyze price waves, and forecast potential market movements.
How It Works
1. RSI and Stochastic RSI Calculation
RSI is calculated based on the selected price source (default: close) with a user-defined Main Line period.
Stochastic RSI is then applied and smoothed using a moving average.
The Main Line represents the smoothed Stochastic RSI, serving as a wave indicator to help identify potential entry and exit points.
2. Overbought and Oversold Zones
The 70 and 30 levels indicate overbought and oversold zones, displayed as dashed lines on the chart.
Additional 20% and 10% levels provide a visual reference for historical price changes, aiding in future predictions.
3. Percentage Price Change Calculation
The indicator calculates the percentage price change over a Barsback period (default: 30 candles).
Users can choose a multiplier (100 or 1000) for better visualization (1000 scales the values by dividing by 10).
The data is displayed as a colored area:
Red (Short) → Negative price change.
Green (Buy) → Positive price change.
Settings & Parameters
Multiplier 💪 – Selects the scaling factor (100 or 1000) for percentage values.
Main Line ✈️ – Stochastic smoothing period (smoothK).
Don't touch ✋ – Reserved value (do not modify).
RSI 🔴 – RSI calculation period.
Stochastic 🔵 – Stochastic RSI calculation period.
Source ⚠️ – Price source for calculations (default: close).
Price changes % 🔼🔽 – Enables percentage price change display.
Barsback ↩️ – Number of candles used to calculate price change.
Visual Representation
Gray Line (Takeprofit Line 🎯) – Smoothed Stochastic RSI.
Red Dashed Line (70) – Overbought zone.
Blue Dashed Line (30) – Oversold zone.
Percentage Price Change Display:
Green Fill → Price increase.
Red Fill → Price decrease.
Advantages
✅ Combined Analysis – Uses RSI and Stochastic RSI for more accurate market condition identification.
✅ Flexibility – Customizable parameters allow adaptation for different markets and strategies.
✅ Visual Clarity – Clearly defined zones and dynamic percentage change display.
✅ Additional Market Insights – The percentage price change helps assess market volatility.
Disadvantages
⚠ Lagging Signals – Smoothing may cause delayed response.
⚠ False Breakouts – The 70/30 levels may not always work effectively for all assets.
⚠ IMPORTANT!
This indicator is for informational and educational purposes only. Past performance does not guarantee future profits! Use it in combination with other technical analysis tools. 🚀
Example 1: Identifying a Long Position
📌 Scenario:
The asset price has dropped significantly (1-hour timeframe), and the Main Line (gray line) crosses below the 30 level. This signals oversold conditions, which may indicate a potential reversal or upward correction.
✅ How to Use:
1️⃣ Identifying the Entry Zone:
If the Main Line is below 30, consider looking for a long entry point.
2️⃣ Confirming the Signal:
Place a vertical line at the moment when the Main Line crosses the 30 level from below.
3️⃣ Confirmation on a Lower Timeframe:
Switch to a 30-minute timeframe and wait for the Main Line to cross above the 70 level.
Enter a long position at this point.
4️⃣ Analyzing Percentage Price Change:
Check the historical indicator behavior:
If a similar past movement resulted in a ~10% price increase (green fill), this may indicate potential upward momentum.
5️⃣ Setting Take-Profit:
Set a take-profit level at 10%, based on previous price movements.
Also, monitor when the Main Line crosses the 70 level, as this may signal a potential profit-taking point.
📊 Conclusion:
This method helps to precisely determine entry points by confirming signals across multiple timeframes and analyzing the historical volatility of the asset. 🚀
Example 2: Analyzing Percentage Price Change
📌 Scenario:
You have set the Barsback parameter to 30, and the indicator shows +3.5%. This means that over the last 30 candles, the price has increased by 3.5%.
However, such small changes might be visually difficult to notice. To improve visibility, you can enable the multiplier (1000), which will scale the displayed percentage change to 35%. This is purely for visual convenience—the actual price movement remains 3.5%.
✅ How to Use:
1️⃣ Identifying Trend Direction:
If the percentage change is positive (green area) → Uptrend.
If the percentage change is negative (red area) → Downtrend.
2️⃣ Analyzing Movement Strength:
Compare the current percentage change with previous waves to evaluate the strength of the movement.
For example:
If previous waves reached 10% or more, a current wave of 3.5% might indicate a weak trend or a local correction.
3️⃣ Additional Filtering with the Main Line (Gray Line):
Use the Main Line to confirm the trend.
If the percentage change shows an increase, but the Main Line is still below 30, further upward movement can be expected.
If the percentage change indicates a decline, but the Main Line is above 70, there is a higher probability of a downward reversal.
"It's unfortunate that TradingView restricts adding images to indicator descriptions unless you have a paid subscription. This makes it harder to share free tools effectively."
How It Works
1. RSI and Stochastic RSI Calculation
RSI is calculated based on the selected price source (default: close) with a user-defined Main Line period.
Stochastic RSI is then applied and smoothed using a moving average.
The Main Line represents the smoothed Stochastic RSI, serving as a wave indicator to help identify potential entry and exit points.
2. Overbought and Oversold Zones
The 70 and 30 levels indicate overbought and oversold zones, displayed as dashed lines on the chart.
Additional 20% and 10% levels provide a visual reference for historical price changes, aiding in future predictions.
3. Percentage Price Change Calculation
The indicator calculates the percentage price change over a Barsback period (default: 30 candles).
Users can choose a multiplier (100 or 1000) for better visualization (1000 scales the values by dividing by 10).
The data is displayed as a colored area:
Red (Short) → Negative price change.
Green (Buy) → Positive price change.
Settings & Parameters
Multiplier 💪 – Selects the scaling factor (100 or 1000) for percentage values.
Main Line ✈️ – Stochastic smoothing period (smoothK).
Don't touch ✋ – Reserved value (do not modify).
RSI 🔴 – RSI calculation period.
Stochastic 🔵 – Stochastic RSI calculation period.
Source ⚠️ – Price source for calculations (default: close).
Price changes % 🔼🔽 – Enables percentage price change display.
Barsback ↩️ – Number of candles used to calculate price change.
Visual Representation
Gray Line (Takeprofit Line 🎯) – Smoothed Stochastic RSI.
Red Dashed Line (70) – Overbought zone.
Blue Dashed Line (30) – Oversold zone.
Percentage Price Change Display:
Green Fill → Price increase.
Red Fill → Price decrease.
Advantages
✅ Combined Analysis – Uses RSI and Stochastic RSI for more accurate market condition identification.
✅ Flexibility – Customizable parameters allow adaptation for different markets and strategies.
✅ Visual Clarity – Clearly defined zones and dynamic percentage change display.
✅ Additional Market Insights – The percentage price change helps assess market volatility.
Disadvantages
⚠ Lagging Signals – Smoothing may cause delayed response.
⚠ False Breakouts – The 70/30 levels may not always work effectively for all assets.
⚠ IMPORTANT!
This indicator is for informational and educational purposes only. Past performance does not guarantee future profits! Use it in combination with other technical analysis tools. 🚀
Example 1: Identifying a Long Position
📌 Scenario:
The asset price has dropped significantly (1-hour timeframe), and the Main Line (gray line) crosses below the 30 level. This signals oversold conditions, which may indicate a potential reversal or upward correction.
✅ How to Use:
1️⃣ Identifying the Entry Zone:
If the Main Line is below 30, consider looking for a long entry point.
2️⃣ Confirming the Signal:
Place a vertical line at the moment when the Main Line crosses the 30 level from below.
3️⃣ Confirmation on a Lower Timeframe:
Switch to a 30-minute timeframe and wait for the Main Line to cross above the 70 level.
Enter a long position at this point.
4️⃣ Analyzing Percentage Price Change:
Check the historical indicator behavior:
If a similar past movement resulted in a ~10% price increase (green fill), this may indicate potential upward momentum.
5️⃣ Setting Take-Profit:
Set a take-profit level at 10%, based on previous price movements.
Also, monitor when the Main Line crosses the 70 level, as this may signal a potential profit-taking point.
📊 Conclusion:
This method helps to precisely determine entry points by confirming signals across multiple timeframes and analyzing the historical volatility of the asset. 🚀
Example 2: Analyzing Percentage Price Change
📌 Scenario:
You have set the Barsback parameter to 30, and the indicator shows +3.5%. This means that over the last 30 candles, the price has increased by 3.5%.
However, such small changes might be visually difficult to notice. To improve visibility, you can enable the multiplier (1000), which will scale the displayed percentage change to 35%. This is purely for visual convenience—the actual price movement remains 3.5%.
✅ How to Use:
1️⃣ Identifying Trend Direction:
If the percentage change is positive (green area) → Uptrend.
If the percentage change is negative (red area) → Downtrend.
2️⃣ Analyzing Movement Strength:
Compare the current percentage change with previous waves to evaluate the strength of the movement.
For example:
If previous waves reached 10% or more, a current wave of 3.5% might indicate a weak trend or a local correction.
3️⃣ Additional Filtering with the Main Line (Gray Line):
Use the Main Line to confirm the trend.
If the percentage change shows an increase, but the Main Line is still below 30, further upward movement can be expected.
If the percentage change indicates a decline, but the Main Line is above 70, there is a higher probability of a downward reversal.
"It's unfortunate that TradingView restricts adding images to indicator descriptions unless you have a paid subscription. This makes it harder to share free tools effectively."
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